Enbridge Northern Gateway: The Future of Nexen Inc.
According to an article published on Huffington Post, Enbridge Northern Gateway pipeline representatives have been pressed by lawyers from environmental groups regarding the possibility of Chinese interests buying control of the project. Enbridge predicts that reaching markets in Asia through the Northern Gateway would increase Canada’s GDP by $312 billion over twenty five years.
“Enbridge’s (TSX:ENB) line would ship Alberta’s crude to the B.C. coast where it could be loaded onto tankers.”
A proposal was made by China’s state run NOOC (Northern Offshore Oil Corporation) for a deal of $15.1 billion to buy Calgary-based oil and gas producer Nexen Inc. This proposal, if approved, would mean control of Canada’s supply and market in this industry by China. If China’s state run NOOC becomes a shareholder of Nexen Inc., not only would it interfere with the current healthy Canadian free market, it would also impose its administration habits and command economy to Canada’s third largest oil company. The impact could be as significant as to cause unnecessary conflicts between the two nations. Not to mention, the Chinese environmental and manufacture safety and emergency awareness is not up to par with Canada’s strict standards.
If this deal falls through, would NOOC agree to run the company fully following Canada’s policies and management regulations?
For full article visit http://www.huffingtonpost.ca/2012/09/08/enbridge-northern-gateway-pipeline-chinese-interest_n_1867701.html
